What makes a domain name valuable?

What makes a domain name valuableAre you new to matters pertaining domain names as well as domain name investing? This post is meant for you. High profile domain names have very significant value if sold at the right prices. In fact, most of them sell at 6 and seven figures.

Here are things to consider when considering buying a premium domain name for your business:

 

1. Specific words after industry, service, etc.

service

A domain name that contains one or two words that represent a geographic location or even a large business category must command a premium.
For instance, premium domain names include, furniture.com, runningshoes.com and such. Such domain names are commonly known as category defining domain names as they represent the service.

2. .COM extension

  • Just 99 Cent .COM Domain Registration at GoDaddy or 1&1

.COM domain

While there exist exceptions to the rule, a domain name is classified in the true premium category if it has a .com extension. However, there have been other historical sales in other TLDs some like Meet.me as well as date.me.
However, it’s worth noting that high-value domain names are those with the .com extensions. These are not only well known, but they are also modern.

3. Short names or acronyms

Short names or acronymsAcronyms are the arguably the domain names that top the list of domain names in high demand. This is because they are not only easy to type, and they are also incredibly easy to remember. Two-letter domain names like BB.com are very valuable too. In fact, selling the two or three letter domain name at the right worth would be such a great investment.

4. High advertiser competition names

High advertiser competition namesAdvertisers will have a specific name that they compete for to get traffic. This may be a name of a product or service. A domain name that exactly matches the name in that space will be more valuable especially for the advertisers.
For instance, on searching mortgage on Google, you will be surprised by the high number of advertisers who are competing for traffic, i.e. clicks. Therefore, a domain name that is named mortgage.com is very valuable.

5. One-word names with a brand name

Domain names that stand for a brand for business or a corporation have an added value. These include names like: Blue.com as well as Slide.com. Most of them, however, don’t contain a specific service or product, but that doesn’t matter; they still have a high demand.

6. Domains that have a high search volume

Domains that have a high search volumeSome domains are named after a word or term that’s highly searched on Google. You can determine the volume of searches by using Google Keyword tool which is listed on the free domain (appraisal) websites such as Estibot.com and domainWorth.com.
Here you can choose a term that has the potential to rise its searches. The game here is that if a word is commonly searched on Google, advertisers will compete for eyeballs related to the word’s searches. This implies that the domains that match the high volume searches names will have a higher value than the rest that doesn’t match a name.

7. Use common sense and follow your intuition

I prefer this most. You can have an analysis of the name by running metrics, comparisons, appraisals, and even tools. At the end of the day, you may ask yourself, does this name sound like a premium domain name? If for instance, the name is domainforsale.com, then this is not a premium name. If the name is domains.com, then this is one. Also, sharepromocode.com is not a premium domain name. The domain name here should be Loans.com or even mortgage.com or banking.com. Genuinely, it’s not worth pondering whether a domain name has a high value. If the price of the domain name is fair basing on the sales and my purpose with it, then the domain name is great.

8. Consider whether the trend is positive or negative

Do you want to learn about trends of domain searches for particular words as well as terms? You can visit Google.com/trends for more. You will learn that if the trend is rising/ going up (positive), then it means that the domain name may be hot for a certain period.
However, if the trend is dropping or going downwards (negative), the domain peak value may be passed already, and the domain name may be less valuable.

The list of factors above should be an eye-opener to you if you want to start investing in domain names.

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